Updated Checked by the Tax-Services.ca editorial team How we check
Payroll compliance in Canada comes down to four dates and one habit. You remit what you withheld by the 15th of the next month (sooner if your payroll is big), you file T4 slips by the last day of February, and you keep your records for six years. The habit is checking each pay run against the rules before the money moves.
When does the money have to reach the CRA?
The CRA sorts employers into remitter types based on the average monthly withholding amount from two years back. Bigger payrolls pay more often, and the CRA’s page on when to remit sets out each schedule.
| Remitter type | Average monthly withholding | Due |
|---|---|---|
| Quarterly | Under $3,000, with a clean record | April 15, July 15, October 15, January 15 |
| Regular | Up to $24,999.99 | The 15th of the next month |
| Threshold 1 | $25,000 to $99,999.99 | The 25th of the same month and the 10th of the next |
| Threshold 2 | $100,000 or more | Third working day after the 7th, 14th, 21st and month end |
If a due date lands on a weekend or holiday, a payment is on time when the CRA gets it by the next business day. Quarterly status isn’t permanent, either. A new employer who starts as a quarterly remitter must switch to regular remitting in the next quarter once monthly withholding reaches $1,000 or more.
What does a late remittance cost?
More than people expect.
The CRA charges 3% when you’re one to three days late, 5% at four or five days, 7% at six or seven days and 10% after that, or when nothing is paid. Interest runs on top from the due date. A repeat failure with gross negligence can bring 20%.
On a $3,000 remittance, ten days late is a $300 penalty before interest.
What does a real remittance look like?
Take four employees in Ontario, each paid $2,500 every two weeks. Our payroll remittance calculator puts the amount held back from their pay at $2,222.19 a period. Your own share is another $791.16 (CPP matching theirs, EI at 1.4 times theirs). The total to send is $3,013.35 every pay run, and the payroll costs you $10,791.16 a period once you add the wages.
That employer share is the part people forget to budget. It adds about 7.9% on top of those wages. You can see the split for a single worker with the payroll deductions calculator.
What should you check on every pay run?
A short list does more than a long manual. Before the money moves, confirm the hours or salary, check that each employee’s tax, CPP and EI came off, and match the total to the amount you plan to remit. Then put the next due date somewhere you’ll see it.
Picture Greg, who runs a small framing crew in Barrie with four people. He signs off each pay on a Thursday and sends the remittance on the same afternoon rather than the 14th. It feels fussy until the 15th lands on a Sunday and everyone else is scrambling. A few minutes of habit keeps a paycheque from turning into a penalty.
Which slips and returns do you file?
Each year you give every employee a T4 slip and file the T4 summary with the CRA on or before the last day of February. If that falls on a weekend, the next business day applies. Miss the employee copy and the penalty is $25 a day per slip, with a floor of $100 and a ceiling of $2,500.
EI premiums you withhold feed the benefit your staff may claim later. The EI calculator shows what a claim could look like.
Where do businesses slip up?
The most common gap is worker status. Somebody you call a contractor may legally be an employee, and then CPP, EI and tax should have been withheld. The CRA looks at control, who supplies the tools, who can hire helpers, and who carries the financial risk and the chance of profit. No single factor decides it.
The second gap is the province. A worker whose province of employment is Quebec has QPP taken off, not CPP, and Revenu Québec handles the provincial side. Get that wrong and you can be assessed for the QPP and QPIP you didn’t deduct, then have to ask for the CPP and EI back.
Third, the records. The CRA wants paper and electronic records for at least six years after the year they relate to. Federal labour standards for federally regulated employers ask for 36 months of payroll records, and provinces have their own minimums that we haven’t checked. Keeping everything six years covers the CRA, and it’s cheap.
Minimum wage and overtime are the other half of compliance. Those rules sit in each province’s employment standards law, not with the CRA. The minimum wage calculator and overtime pay calculator work from the rates we’ve collected, but check your province’s labour ministry before you rely on a figure.
Where we got these figures
Due dates, penalty rates and remitter thresholds come from the Canada Revenue Agency‘s payroll pages on when to remit and on T4 filing. Contribution rates for 2026 are from the CRA and Retraite Québec. The worked example uses our own calculator. We could not confirm provincial record-keeping periods, so we’ve left them out. This site is independent of the CRA and every provincial agency. We aren’t a government service and we don’t speak for one.
Frequently asked questions
When do I have to remit payroll deductions?
Most small employers are regular remitters and pay by the 15th of the next month. Quarterly and accelerated schedules exist, depending on your average monthly withholding amount.
What is the penalty for remitting late?
The CRA charges 3% to 10% depending on how late you are, plus daily interest. The top rate applies after seven days or when nothing is paid.
When are T4 slips due?
On or before the last day of February for the previous calendar year. If that day is a weekend, the next business day applies.
How long should I keep payroll records?
The CRA asks for at least six years after the year the records relate to. Provincial labour rules may add their own minimums, so check yours.
Do I pay anything on top of an employee's wages?
Yes. You match the employee's CPP (or QPP in Quebec) and pay EI at 1.4 times the employee's rate.
All payroll and salary calculators
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